THE BASIS POINT

Worst Jobs Report since September 2010

BLS Employment Situation Report (May 2016)

– Nonfarm Payrolls month/month seasonally adjusted  38,000. Previous revised from +16,000 to +123,000
– Unemployment Rate  4.7%. Previous was 5.0%
– Private Payrolls month/month   25,000. Previous was 130,000
– Participation Rate 62.6%. Previous was 62.8%
– Average Hourly Earnings month/month +0.2%. Previous was +0.4%
– Average Workweek – All Employees  34.4 hours. Previous was 34.4

This is the worst report since September 2010.  The number of people in the workforce fell by 458,000 which explains how the unemployment rate fell.

The fact is that the labor market has not been as strong as the media has been advertising. It had slow, mediocre growth with most of the added jobs being low paying.

Not seasonally adjusted data was +651,000.  The previous May was 947,000 not seasonally adjusted.

Trade Deficit (April 2016)

– Trade Deficit  $37.4 billion. Previous was $35.5 billion.

Exports were +1.5%.

PMI Services Index (May 2016)

– Level 51.3. Previous was 52.8

Another weak supply-side metric.

Factory Orders (April 2016)

– Factory Orders month/month  +1.9%. Previous was +1.7%.

Durable Goods Orders showed strength increasing 3.4%.

ISM Non-Manufacturing Index  (May 2016)

– Composite Index  52.9. Previous was 55.7.

Still growing but at a slower pace and well below expectations.